Poland's state-controlled PGNiG said Nov. 2 it has requested talks with the export arm of Russian gas giant Gazprom to renegotiate the gas contract price for deliveries from Russia.
Under the companies' long-term supply contract, both parties have the right to start discussions about changing the contract price every three years. Under the contract, Gazprom delivers up to 10.2 Bcm/year of gas to PGNiG and the Polish company is obliged to pay for at least 8.7 Bcm/year under the take-or-pay terms of the partly oil-indexed contract.
Gazprom Export said Nov. 2 it had received the request from PGNiG to revise the price in the contract for gas supplies from Nov. 1, 2020. "The right of each party to request pricing revision once in three years in the case of certain circumstances is foreseen in the contract," the company told S&P Global Platts.
The contract, signed in 1996, is due to expire in October 2022 and PGNiG officials have repeatedly stated they do not wish to extend it. PGNiG plans to replace Russian pipeline gas with increased LNG deliveries from the US through Poland's Swinoujscie terminal and with Norwegian gas following the completion of the 10 Bcm/year Baltic Pipe project -- also slated for October 2022.
In July, PGNiG received $1.5 billion in compensation from Gazprom after it sued the Russian company in the arbitration court in Stockholm over overpriced gas deliveries between 2014 and 2020.
